Russia has boosted its military presence in Ukraine, specifically in Crimea, following the ouster of pro-Russian president Viktor Yanukovych and the installation of a new interim government. Ukraine's new leaders accused Russia of declaring war.

Kathleen Brooks, a research director at FOREX.com, said Putin's apparent backpedaling is restoring some calm in the markets.

"There has been a distinct change in the tone of the markets today as the Russian-Ukraine crisis stabilizes. The latest headlines suggest that Putin has had a change of heart," she said. "Putin is still trying to save some face after this situation dramatically backfired on him."

The U.S. has already suspended trade and investment talks with the Russian government, in the first of potentially many moves intended to force Russia to keep backing away from Ukraine.

But investors know the crisis is not over yet.

"The situation in Ukraine is far from off the radar and remains a potent wild card," said Ilya Spivak, a currency Analyst at DailyFX. "Deeper escalation of tensions remains a clear possibility."